BMi sale, Close To Done Deal

[Garry Russell]

IAG look set to take over but Virgin still want it

http://www.bbc.co.uk/news/business-16298167

[TobyV]

I wonder what they will do with the brand? Caledonian and DAN Air were quite quickly integrated (at least the bits they wanted) and Caledonian was re-used for the charter arm but I cannot see BA wanting to reenter that market. I assume the regional business and BMI baby will be sold separately by Lufthansa first, BA having divested its regional business into flyBe of which it is still a shareholder.

Never flown BMI but flew BMI baby a couple of times and they were ok.

[Garry Russell]

It mentions that regional and BM Baby are not a part of the as such but might influence the price depending on outcome

I can't see BA wanting them either especially given the economic climate. It just not fit in their business model and never really has.

BMi may well continue separately lie Iberia and BA perhaps BMi concentration on business travel or maybe just quietly disappear.

Virgin is certainly not happy and from the dominate BA aspect and BMi being the second largest LHR user I am surprised it has been allowed

[TobyV]

I don't think its got through that yet, I'm sure Branson will try to have it referred to Monopolies & Mergers (just googled and realised thats been the Competition Commission since 1999!). It would be interesting in the spirit of true competiton perhaps if it had gone to Branson but presumably whatever offer he was able to make Lufthansa was not comparable to BA's. I would have thought that Lufthansa would have regarded Virgin as less of a competitor to themselves than IAG and the One World alliance. We shall see what comes of this.

Quite honestly, whoever gets BMI, let's hope it doesn't turn out as too much of a turkey (or at least no more of a turkey than is expected). I can remember rival UK banks (Barclays and RBS I think) outbiding each other for ABN Amro until RBS finally got it and we (the public) ended up bailing them out as a consequence.

[jonesey2k]

So how many slots do BA have now then???

[Garry Russell]

Just read about slots.

No idea of the actual number but at present BA has 45% of the slots at LHR and with BMi it would put it well above 50.

[Garry Russell]

Been approved

http://www.bbc.co.uk/news/business-17559317

[TSR2]

When we talk about competition we must remember that Air France / KLM control somewhere in the region of 70% of slots in Paris, and even with the BMI slots, IAG will have less than 50 % in London, so Branson can wind his neck in. If he wanted it that much he should have bought it. As it is, he couldn't afford (or didn't want) to come close to IAG's price and is just doing a PR stunt ranting about it.